Some years ago trading was carried out using trade by barter. We grow to to meet coins/money as a means of trade. The reasons for the adoption of coins/money was due to the fact that there were the disadvantages of trade by barter. This was eliminated with coins/money. But using cash also had it’s own disadvantages. Better alternative should be able to eliminate them. In looking for another alternative came cashless economy/society. So what is a cashless economy?
Why Shift To Cashless Economy/Society In Nigeria
- When there is less physical cash in a society, there tends to be less crime.
- The high risk involve in moving about going to places with hard money is remove.
- This move if fully implemented will curb political corruption.
- Banking will improve as there is going to be a reduction in banking cost.
- counterfeit and soiled money from will be a thing of the past.
- No delays and queues at ATM stands and inside banking halls
- It will save the economy since the cost of printing a note is about N4. This can drain the economy if one billion note are to be produced in a year, the cost of minting will be four billion.
Risk Factors And Drawback To Consider As Nigeria Shift To Cashless Economy
- Since money will now be in digital form, cyber hack will increase. According to a source, the security of transactions in Nigeria is about 40% vulnerable to cyber attack as players in the industry are yet to adopt the security device/software necessary for 100% security. Only one player is fully equip to handle cyber attack.
- The entry of mobile phone in Nigeria some years back have truly increase penetration of internet network in places where it was difficult to get internet. But there are still locations even close to urban areas that still lack these basic facilities to run on a cashless economy.
- To be fully functional, a person must obtain at least a feature phone to carry out transactions. The cost of owning one can be a major draw back in actualizing this dream.
- The illiteracy level in Nigeria is still high. Worst still computer literate are scared of trying out these new models of transactions. This could be due to the fact that they are aware of the level of security.